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Managing Capability Roadmaps
Managing Capability Roadmaps
Capability
Roadmaps
Uncovering and Mitigating Redundancy
White paper
This white paper presents a framework for managing capability roadmaps and facilitating
continuous assessment of roadmap value propositions. The framework can be applied to
enterprise architecture processes, product / system portfolio management functions as
well as other corporate improvement initiatives.
Capability roadmaps are strategic documents that outline an organizations long term view
or its core capabilities. Generally, capability roadmap is a five year projection of strategic
capabilities that drive an organizations growth, competitive edge and market share.
Capability roadmaps are also the foundation of strategic investment plans and enterprise
architectures. As such preventing the redundancy of capability roadmaps is (should be) a
top priority and managing capability roadmaps is a critical corporate competency.
The thought process highlighted in this paper should be improved upon by adopting the
framework, and advancing the framework through real world experiences and innovation.
The core elements of capability roadmaps are inter-dependent and overlap one another.
A capabilities target
state is based on long
term vision and it’s
critical that the target
state represents shared
goals and objectives.
Success of a capability
roadmap is based on
credible knowledge of the
actual transition scope aka
the gap between current
state and target state.
Identifying redundancy requires a capability model that can be used for objectively
assessing the properties of all capabilities. Every capability roadmap should have an
accompanying capability model capturing the underlying properties of individual
capabilities.
Property relationships can be modeled using a four tier proper ordering scheme designed
to capture relationships in increasing order of complexity and dependency.
1. Tier 1 – Independent properties are modeled as first order properties. First order
properties include Concept, Context and Data
2. Tier 2 – Derived properties are modeled as second order properties, derived from
one or more independent properties. Second order properties include Role,
Information, and Variable
3. Tier 3 – Composite properties are modeled as third order properties, composed of
first and/or second order properties. There is only one third order property,
Information
4. Tier 4 – Identity properties are modeled as fourth order properties composed of
second and/or third order properties. There are two fourth order properties,
Feature and Function
Modeling the capabilities of a capability roadmap helps identify the shared properties
across the roadmap. Shared properties need to be carefully monitored as the impact of
capability redundancy can cause severe ripple impacts to other capabilities that share the
same properties.
Every capability roadmap has some inherent risk of redundancy. Specific capabilities of
the roadmap can be at higher risk of redundancy or an entire roadmap can be exposed to
redundancy risks. Identifying the type of redundancy threats can provide capability
roadmap managers the opportunity to monitor redundancy risk and take proactive
measures to mitigate potential redundancy.
What is Redundancy?
Not all redundancy is bad. The key differentiator between good and bad redundancy is
the factor of competition. When two capabilities with similar goals and objectives
compete with one another, one of the capabilities will become redundant. Instead of
competing, when two or more capabilities complement one another, then any potential
redundancy between the capabilities become a potential contingency mitigation asset. For
example, redundant (backup) networks or redundant infrastructure complement each
other and therefore create a safety net to mitigate emergency situations.
Capability Alert
Reference Structures
Two types of reference structures are necessary to enable objective analysis, Spectrums
and Grids.
Spectrum is a continuum (logical range) of values that follow (comply with) a consistent
set of rules. Spectrums are good reference structures to classify and organize fundamental
properties of capabilities. Concepts, data, and context all have individual spectrums with
specific classification of contained values.
A concept spectrum
organizes concepts within a
logical range of four basic
categories, theorized
concepts, verified concepts
(POC- Proof of Concepts),
piloted concepts (initial
implementations), and proven
concepts (repeated, positive
ROI realized).
Data spectrums organize data within a logical range of m unstructured and structured
data models including raw data, free form data, hierarchical data, and relational data.
Concept, Data, and Context spectrums should be established and maintained as enterprise
reference structures independent of any specific capability roadmap. These reference
structures create a consistent set of standards for identifying redundancy risks.
Establishing capability grid models for all core properties is essential to objectively detect
short term and long term redundancy risks of implemented or emerging capabilities.
Capability grid models are reference structures for discovering and assessing discrete
capabilities. The grid models real and hypothetical capabilities in the current and future
context.
Discrete capabilities
are formed when a
feature and function
intersect.
Each intersect
represents a potential
transaction accessible
by a feature and
supported by a
function.
Transactions can be
combined
(aggregated) or
composed into
complex constructs.
Multi-transaction capabilities are formed when a single feature intersects with multiple
functions. These capabilities are able to perform multiple functions accessible through a
single feature. Similarly, an adaptable multi-transaction capability is formed when a
group of feature-function intersects perform a common set of functions. Adaptable
capabilities are able to provide multiple features that perform a common set of discrete
functions.
Every feature and function in the capability grid is a derived property. The dependency of
features and functions on other derived and fundamental properties results in the
capability grid becoming more dynamic and prone to changes. Connecting a feature and
function with other property grids helps maintain traceability with the fundamental
properties and detecting potential redundancies.
Well formed capability grids can identify or define capability domains. A set of cohesive
capabilities derived from similar features and performing similar functions can be
grouped into a capability domain. As new capabilities are identified the capability grid
expands causing existing capability domains to potentially expand or shrink. Sometimes,
new capability domains are identified that completely replace existing capability
domains.
Feature grid model is a structure of features, where each feature is formed by the
intersection of interface and information. Each cell in the feature grid model represents a
unique, discrete feature based on one or more interfaces that consumes changes, or
produces one or more information.
There are many types
of features that can be
composed from the
basic discrete
features.
Polymorphic feature
is composed of
multiple interfaces
and standardized
information.
Overloaded feature is
composed of a
standardized interface
and non-standardized
information.
Establishing a feature grid enables detection of redundant features across capabilities. For
example, a complex feature (one with multiple standardized and non-standardized
interfaces and information) can be split into polymorphic and overloaded features.
Functions define the basic purpose and behavior (value) of a capability. The purpose of a
function is based on a core concept. The behavior of a function is based variability.
When two or more capabilities with similar value proposition and/or property models are
to be assessed, the capability with lower adaptability has a higher probability of
becoming redundant.
Mitigating Redundancy
When redundancy is detected within one or more capabilities, the next step is to mitigate
the redundancy and preserve the value proposition of impacted capability roadmaps.
Fundamentally, redundancy mitigation is the process of merging redundant capabilities
and ensuring the merged capabilities ability to support value propositions of impacted
capability roadmaps. The direct impact of merging capabilities is on capability
progressions. Adjustments to impacted capability progressions are essential to preserve
the roadmaps value propositions.
Capability
driver grid is
an intersection
of entities and
environments
responsible for
driving the
primary need
for a
capability.
Entities have
different
forms of
engagement
ranging from
active to
passive.
Mapping redundant capabilities to the capability driver grid identifies the capability with
stronger value proposition.
Performance of a capability is based on real (in field) observations. There is no doubt that
between redundant capabilities, high performance capabilities will replace low
performance capabilities.
The advantage of using a complex evaluation grid (combination of capability driver and
capability measures grid) is the resulting balanced assessment of redundant capabilities.
Ultimately, high performing original capabilities needed by active entities and
implemented in dynamic environment is preferred over low performing, redundant
capabilities need by passive entities and implemented in constrained environments.
When a redundant capability is replaced (merged) with another capability, the results
generally impact two or more capability roadmaps. One of the impacted roadmap
maintains the merged capability while other roadmaps become dependent on the merged
capability.
Recap
Capability roadmap is an effective tool for capturing and communicating the long term
vision of corporation’s core capabilities. These roadmaps need to be managed on a
continuous basis to preserve their value propositions. The biggest threat to value
propositions is redundancy caused by competition between similar capabilities.
References
How Capability Differences, Transaction Costs, and Learning Curves Interact to Shape
Vertical Scope – Michael G. Jacobides, London Business School, UK